Sesame Technologies Pvt Ltd Vs Deputy State Tax Officer (Kerala High Court)
The Kerala High Court dealt with a writ petition challenging denial of input tax credit (ITC) for the financial year 2019–20 under Section 16(4) of the CGST/SGST Acts. The petitioner had been denied ITC through an order dated 10.06.2024. The petitioner contended that with the notification of Section 16(5) of the CGST/SGST Acts, the statutory position had changed and the benefit of ITC earlier denied would now become available. The Government Pleader was heard on the issue. The Court noted the submission that Section 16(5) alters the applicability of the restriction under Section 16(4) and that the earlier order had not considered this provision. Accepting this position, the Court set aside the impugned order to the extent it denied ITC solely on the basis of Section 16(4). The competent authority was directed to pass fresh orders after considering Section 16(5) of the CGST/SGST Acts and after granting an opportunity of hearing to the petitioner. The Court fixed a time limit of three months from the date of receipt of a certified copy of the judgment for completion of the exercise.
FULL TEXT OF THE JUDGMENT/ORDER OF KERALA HIGH COURT
